Bill Dwyer, Chairman and CEO for Praxis Solutions, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how advisors and asset managers can streamline productivity with artificial intelligence.
The word praxis is defined as moving from theory to action or implementation. Praxis Solutions is an artificial intelligence consulting firm that works with clients to define their needs before building a customized solution. Once the solution is built, Praxis works with clients to install, implement, and maintain the software.
Dwyer believes that it is best when a single firm builds, installs, and maintains a software solution. The key to success in AI is vertical expertise, leading Praxis to specialize in wealth and asset management. The Praxis team is built like a broker-dealer with experts in compliance, legal, and other areas that can communicate effectively with those in similar roles at client firms. A broker-dealer can leverage AI to keep abreast of compliance regulations and new legal developments, with software summarizing updates and creating first drafts of communication. RIAs are using AI in any process where there is a large amount of data, such as onboarding new accounts. RIAs and broker-dealers are currently focused on using AI for middle office applications.
Praxis Solutions started developing solutions for AI-driven asset management at a time when the market was not ready to delegate those responsibilities to opaque algorithms. Dwyer states that AI is best leveraged across a firm, having input into sales and marketing, asset management, technology, and operations processes.
The firm’s Kapital Artificial Intelligence Analyst (KAIA) platform is specifically designed to analyze investment-related data. The system can leverage the work of compliance and investment analysts, multiplying their productivity in researching procedures and ideas. One client was able to reduce the due diligence process on alternative investment funds from ten to three days.
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